Everyone knows to shop around if they want to save money on their homeowner’s insurance. There are so many commercials on television that we can’t help but know that different companies are going to offer different rates.
Furthermore, most people grasp the concept that a higher deductible will get you a lower premium. So, if you’re willing to give up your $500 deductible and go for a $1,000, some say you could save as much as 24 percent on your premium. However, you better be sure you can afford that thousand dollar deductible if something should happen to your home.
Another common known fact is that you’ll get a lower homeowner’s premium if you have your auto and homeowner’s policy with the same company. Give them more business and they’ll give you a discount, it is as simple as that.
What isn’t commonly known is that sometimes you can call your company and ask them whether they’ve taken your credit rating into account. Naturally you shouldn’t do this unless you have a really good credit rating, but if you do, give them a call. You might just get a lower premium.
Also, make sure that the insurance company knows that no one in the home is a smoker. Some companies will lower your premiums for non-smoking households because smoking is a risk for fire.
Everyone knows that you can reduce your premiums by installing things like fire alarms and fire extinguishers, but did you know that you can reduce your premiums even further by installing things like storm shutters? This can be especially helpful in hurricane central. Older homes can be made more earthquake proof in earthquake prone areas, and that can reduce premiums. Sometimes updating your electrical system will qualify you for a discount. Ask your company if any of these will help lower your premium.
Sometimes companies will lower your premiums for security systems, but don’t install one without checking first. Also, security lighting systems can sometimes get you a discount.
Stay with the same company. If you’ve been with the same company a while, they’ll appreciate your business and be more willing to reduce your premium.
While it won’t always reduce your premiums, make sure you’re getting replacement cost coverage. You don’t want to only get fifty bucks for your five year old stereo – you want to be able to replace that stereo.
The most important thing you can do to lower your costs is to communicate with your agent. Come right out and ask whether there is anything you can do to reduce your costs. Some things you might be willing to do, some you might not. But remember, communication is the key.